Goa scraps all SEZs, Center says not so fast!
Goa scraps all SEZ projects
A The Hindu report, 1/1/08
Recommendation to Centre to be withdrawn. Decision taken after consultation with stake-holders. Cabinet-endorsed SEZ policy to be debated
PANAJI: The Goa government on Monday decided to scrap all Special Economic Zone (SEZ) projects in its bid to end the long-drawn public agitation which at one stage threatened to jeopardise New Year celebrations.
At a press conference at his official residence here, after a crucial meeting of the Cabinet Committee on Infrastructure, Chief Minister Digambar Kamat said the government decided to do away with the SEZs in their existing form after discussions, deliberations and consultations with different stakeholders, an exercise that lasted many days.
The government would debate the SEZ policy endorsed by the Cabinet on June 5, 2006 for future guidance.
Same opinion
Mr. Kamat said that apart from the recommendation of the Task Force on the State Regional Plan to scrap SEZs, the government got the same opinion from the Congress, its allies, including the Nationalist Congress Party and the Save Goa Front.
The government decided to withdraw its recommendation to the Centre pertaining to all 15 SEZ projects, of which three were already notified and four were approved but were awaiting notification.
“We have decided to write to the Union Ministry of Commerce not to process the eight SEZ proposals, which were presently put on hold. So also we will write to them not to notify four of those which have been approved but not notified,” Mr. Kamat said.
“As regards the three notified SEZs, since we do not have power to de-notify them, we are taking up the issue with the Union Commerce Ministry,” he said.
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States can’t scrap notified SEZs: Centre
A Hindustan Times report, Jan 2, 2008
The Centre on Wednesday questioned the authority of the Goa government to recommend scrapping of notified special economic zones (SEZs).
After a meeting of the board of approval (BoA) commerce secretary G.K.Pillai said: “There is no provision under law (for states) to recommend de-notification. They have no locus standi to withdraw the notifications to the SEZs.” Notified SEZs, he said, have already become legal entities and therefore cannot be de-notified.
The issue has threatened to snowball into a major controversy after the Goa government announced the scrapping of all SEZs in the state last week. The decision reportedly came after a specially constituted task force recommended that SEZs would be “detrimental to the overall interest of Goa”.
It said the benefits of industrialisation can be reaped without SEZs, by extending incentives to incoming industries.
Anti-SEZ protests have been brewing in the state for the past few months cutting across all political parties. So far 10 SEZs have been granted in-principle approval, of which three were notified including Cipla’s Meditab Specialities, Peninsula Pharma Research Centre and the one proposed by K. Raheja Corp.
“Duty-free equipment has also started coming in. How will the state government compensate the developers? Developers may even approach the court against the decision of the Goa government,” Pillai said.
Special economic zone proposals go through a three-stage process. They are first considered for in-principle approval based on the merits of the applications, followed by a formal approval and finally a notification. So far formal approvals have been granted for setting up of 404 SEZs, out of which 187 have been notified.
Pillai said that over Rs 52,193 crore have been invested in these notified SEZs providing direct employment to over 59,356 people. The BoA on granted formal approval to 24 proposals on Wednesday and extended in-principle to 4 SEZ proposals.